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Maybe it’s me, but I just hate the fact that I should “max out my 401k.” How do I know ill even be alive to see retirement? Shouldn’t I just save money for a house or pad my savings rather than 401k?

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works at

This mindset is probably why most Americans have less than 100k in retirement savings at age 65

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likefunnysmart
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Another option is to marry into money

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likefunny
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Why buy insurance, or live a healthy lifestyle, etc? It’s based on strong likelihood that you’ll be alive in 40 years. You either pay small now or big later

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I am 65 and will retire August of this year. Max out your 401k. Also need to think about maybe owning some rentals for retirement income. The compounding factor does work with the 401K . Also good to be debt free, which includes a paid off house

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Tips for paying off your house? Don't refinance. Most of the savings from refinancing comes from extending the term of the loan these days. If you buy a new house after 40 get a 15 yr loan. If you do those two things the natural amortization of single family home loan takes care of everything for you. You don't need to pay our house off in 10 or 20 years by making extra payments unless you are buying a new house relatively late in life.

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i feel the exact same way

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Adulting is hard

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Let's see, 401k is tax deferred lowering your current taxes and the match is free money in your pocket. The alternative is to do nothing and hope you can live off of social security (if it's still around) or die young. Hmm, no brainer!

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You just need to be prepared for the eventuality that you live into retirement and have saved enough to live on in case of that eventuality. Whether you do it through regular savings or 401k. 401k makes sense to a lot of people coz of the tax benefits and company match. I personally don't max out my 401k, but just put in enough for the company match.

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Being old and poor with health problems would not be fun for you or your family and friends.

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I’m 57. If I had maxed out my 401K when I was younger I would be retired already

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I’ve contributed to my 401k for 23 years...$1,134,000 balance. I’m not sorry

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I’ve maxed for many years but not initially. I had to ramp up contributions over several years. Plan to retire at 55 after 3 kids are through college, but still in my 40s. I’ve carried a mortgage since I was 25 and will be debt free before retirement.

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Maxing our 401k is not always the best answer, but I would at least be contributing to the match. From there they’re may be other priorities like saving for a down payment. That being said if your really think that the possibility of you not being around for retirement is a good excuse not to save you need to get real with yourself

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Keep in mind that inflation is a silent killer! If your $ is not growing in someway or another and your savings does not outgrow inflation you will end up poorer each year. 2% does not seem like a lot now but over 20-30 years it’s a ton! 2% inflation (last year inflation was 2.44%) means that $10,000 today only has the buying power of $6,000 in 20 years!

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Gains on tax free money > gains on taxed money. That shit adds up over time.

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likeuplifting
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I think Op understands the benefit, he’s just referring to the concept of delayed gratification, so we should speak his language. Op - utilize the 401k or plan to keep working forever 😬. I’m being hyperbolic of course but it’s still relatively true

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Another thing to consider is health insurance after retirement. Medicare at 65 is not enough. Some companies will let you keep your company health insurance at the rate you are paying while working. Something to ask as you get older when interviewing for a job.

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Consider balancing funding your 401k with investing in a home that you will own outright when you retire. Retiring without a rent or mortgage payment is as important as funding your 401k.

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You should take it all to the casino instead - or spend it all on lavish vacations YOLO!!

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likefunny
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Truth to this

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#makeeverythingfree

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#callmecomrade

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